Using Danish household level data, we find that a relatively large share of total interest-only mortgage debt is held …-only loans do not fully use the lower instalments to increase their savings or to amortise more expensive debt. This is in … type in Denmark, and the largest difference is found for those families who have the lowest savings propensity, and those …

liquidity may be related positively to the longer-term probability of default. Our empirical analysis confirms these predictions …, suggesting that precautionary savings are central to understanding the effects of cash on credit risk"--National Bureau of …

liquidity may be related positively to the longer-term probability of default. Our empirical analysis confirms these predictions …, suggesting that precautionary savings are central to understanding the effects of cash on credit risk …

firms with higher cash reserves are less likely to default in the short term, endogenously determined liquidity may be …, suggesting that precautionary savings are central to understanding the effects of cash on credit risk …